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India Sees Record 8.1 GWh Energy Storage Tenders in July as Tariffs Hit New Low

India's energy storage sector hit a new milestone in July 2025, with states collectively tendering a record 8.1 GWh of capacity—marking the highest ever in a single month. This surge is backed by growing demand for round-the-clock power, renewable purchase obligations, and the need to manage evening peak loads. The auctions for solar-plus-storage projects also discovered a record low tariff of Rs3.13 per unit for systems with four-hour storage—down from the previous low of Rs3.32.

This growth aligns with the government’s recently introduced Viability Gap Funding (VGF) scheme, which supports battery energy storage systems (BESS) up to 30 GWh through the Power System Development Fund (PSDF). Nearly a third of this capacity has already been tendered. States like Rajasthan, Gujarat, and Maharashtra are leading with large projects ranging between 2 GWh and 4 GWh under the VGF scheme.

According to India Energy Storage Alliance (IESA) President Debmalya Sen, project sizes and participation are both increasing. Tariffs for 4-hour, one-cycle BESS have also declined—from Rs4.41 lakh/MW/month to Rs3.59 lakh/MW/month in just six months—making such solutions more viable and scalable. With the VGF scheme open for a year, further momentum is expected as more states rush to utilize central support for advancing storage infrastructure.